A Bill abolishing stamp duty for all first-time buyers regardless of the value of the house will be rushed through the Dáil immediately if the old government is returned.
Taoiseach Bertie Ahern confirmed yesterday that legislation was being drafted to allow for major reform of stamp duty as promised by Fianna Fáil in its election manifesto. He expected it to be law "within weeks".
The Finance Number Two Bill - which will abolish stamp duty for first-time buyers on new or second-hand homes - will steady the housing market at the current "risky juncture", Mr Ahern said. The changes would be retrospective for all transactions stamped after April 30th.
Mr Ahern said uncertainty had the potential to damage the house market, and this would have adverse knock-on effects on the wider economy.
"We need to bring that uncertainty to an end."
Writing in the Sunday Independent, Mr Ahern said a strong construction sector - which employs 282,000 people across the country and many tens of thousands more in related industries - was vital to a strong economy.
"It is a major contributor to the health of our public finances . . . It is in everyone's best interest that it be allowed to thrive and continue generating good job opportunities and good earnings for thousands of families through Ireland."
He said in approaching the issue of stamp duty reform he and Minister for Finance Brian Cowen wanted to produce a set of proposals which were "targeted, affordable and which would not disrupt the housing market".
"Specifically, we wanted to help those who come to the property market without the advantage of the house price appreciation of the past number of years.
"At the same time we wanted any reform to minimise the impact on housing market conditions and return certainty to one of our most important industries."
He said the measure would level the playing field between first-time and other buyers, and would create a better choice for those who are buying their first homes.
"This is the right thing to do and the fair thing to do. They are the commitments which we made and they are the commitments which we will keep.
"Fianna Fáil will introduce legislation to make these changes immediately on return of government. Within weeks our proposals will become law."
He said home ownership was one of the primary aspirations of the people of Ireland, and provided a secure environment in which to grow up and grow old.
The Irish Times reported last week that the legislation to allow for the stamp duty reform was being drafted.
A Department of Finance source confirmed yesterday that the Bill would be put through the houses of the Oireachtas before the end of the second week of the new Dáil and would be law well before the summer recess.